12.15pm GMT update

Tata to Land Rover and Jaguar

Ford today confirmed that it has agreed to sell its Land Rover and Jaguar marques to Indian group Tata for $2.3bn (£1.15bn).

The deal also includes a $600m Ford payment into Jaguar and Land Rover's pension plans, agreements for Ford to continue to supply power trains, stampings and other components to Jaguar and Land Rover as well as other support services.

Ford has also agreed to provide financing for Jaguar and Land Rover dealers for up to 12 months.

The two companies said they believed the deal would support Jaguar and Land Rover's current production plans and did not expect the change of ownership would mean any significant change to employees' terms of employment.

Ford's president and chief executive, Alan Mulally, said: "Jaguar and Land Rover are terrific brands. We are confident they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship."

Tata's chairman, Ratan Tata, said: "We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact."

Tony Woodley, joint general secretary of Unite the union, said that if Jaguar Land Rover had to be sold then Tata was the best option.

"We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable," he said. "But with the commitments Tata have given to the future of Jaguar Land Rover and the long term supply agreements for components, especially engines from Bridgend and Dagenham, we're obviously pleased they are in the game."

Woodley added that there was disappointment that Ford had decided against taking a stake in the future of the companies. "That is a big disappointment," he added.